Stocks and US equity futures rose Thursday but were off session highs, hampered by the prospect of a sustained campaign of Federal Reserve interest-rate hikes to get runaway inflation under control.
An Asian share gauge and US contracts rose less than 1% after a Wall Street rally that halted a five-day, 10% rout in the S&P 500. US equities had advanced as markets focused on Fed Chair Jerome Powell’scomment that super-sized hikes will be rare. He was speaking in a briefing after the central bank increased borrowing costs the most since 1994. Treasury yields had also tumbled Wednesday as traders pared bets on Fed tightening next month -- no longer fully pricing in a three-quarter point move. But the notes subsequently reversed a chunk of that shift in Asian trading. Powell signaled another big hike in July after the Fed raised rates by three-quarters of a percentage point, but added “today’s 75 basis-point increase is an unusually large one and I do not expect moves of this size to be common.” Leaning against the risk of a string of jumbo moves spurred the now-ebbing relief rally. The dollar ticked up and the yen fell. Cryptocurrencies -- emblematic of market stress due to tighter financial conditions -- pared gains. Wednesday’s decision took the target range for the federal funds rate to 1.5% to 1.75%. Officials projected 3.4% by year-end and 3.8% by the end of 2023. The Fed also reiterated it will shrink its balance sheet by $47.5 billion a month -- a move that took effect June 1 -- stepping up to $95 billion in September. Fears of an environment of sharply slower economic growth, elevated price pressures and rising rates continue to shadow markets. An unexpected first-quarter contraction in New Zealand’s economy underlined worries about recession risks in a range of nations.
From Friday through Tuesday, US Treasury yields surged in one of the biggest selloffs in decades and global equities fell into a bear market. In commodity markets, crude oil pushed higher and gold trimmed a rally. US After Hours Quiet after hours; many banks increased prime lending rates by 75bp, as expected, following Fed decision.
Nikkei +0,56% Hang Seng -1,29% CSI -0,32% Shanghai -0,45% Shenzen +0,36%
Eur$ 1,0440 CNH 6,7042 CNY 6,6991 JPY 134,36 GBP 1,2151 CHF 0,9954 RUB 57,25 TRY 17,2595 WTI$ 116,05 Gold 1,831,25 BTC 22,310 ETH 1,213
S&P -0,33% Nasdaq -0,37% EuroStoxx +0,32% FTSE -0,16% Dax +0,32% SMI -0,39%
Macro :
- Fed Hikes 75 Basis Points, Powell Says 75 or 50 Likely in July
- ECB Acts to Stem Nascent Italian Crisis With Pledge of New Tool
- Jeffrey Gundlach Tells CNBC That Powell Is ‘Very Short-Termist’
Keep an eye on :
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- DTE GY : Dish’s 5G Spreads to 120 US Cities, Meeting US Deadline
- ENX FP : Euronext to Reactivate EDIM Feature From June 16
- EBS AV : Erste Picks Ex-Bank Austria Chief Cernko as CEO to Succeed Spalt
- HNSA SS : Hansa Biopharma Gets Recommendation by NICE for Idefirix
- NZYMB DC : Novozymes, AgroFresh Explore Solutions to Cut Post-Harvest Waste
- OMV AV : Gazprom Plans to Cut Gas Supplies to OMV: Vedomosti
- OUT1V FH : Outokumpu Sets Out Financial Targets, Second Phase of Strategy
- RKT LN : FDA: Mead Johnson/Reckitt Base Powder to Begin Shipping in June
- REV US : Revlon Files for Bankruptcy Facing High Debt, Supply Chain Pain
- RXL FP : Rexel Boosts FY Same-Day Sales Forecast
- ROG SW : Roche Gets FDA Nod for Cobas SARS-CoV-2 Duo PCR Test
- SNBN SW : Swiss Real Estate Risk Rising, Correction More Likely, SNB says
- SPIE FP : Spie to Buy Stangl Technik in Poland, Czech Republic; No Terms
- TSLA US : Tesla Increases Prices Across Lineup: Electrek
- THG LN : Belerion, King Street Said to Drop £2.1 Billion Pursuit of THG
- TWTR US : Elon Musk Expected to Reiterate Desire to Own Twitter in Meeting Thursday -- WSJ
- UBSG SW : SNB Says Credit Suisse, UBS Well Placed for Challenges
- UN01 GY : Russia Cuts Gas Deliveries to German Energy Giant Uniper by 25%
- VLA FP : Valneva Settles With UK to End Deal for Covid-19 Vaccine
- VIE FP : Suez Preparing Bid for UK Unit If Veolia Takeover Blocked: FT
- MF FP : Wendel CEO Francois-Poncet Wants to Step Down in Near Future